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  1. #1
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    Current average installation rates

    Hi there, I have recently registered an electrical installation company and would like to know what are the average installation rates for single phase socket outlets, lighting points, db wiring and coc's. Thanks

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    Hi

    The quickest way to close your Electrical contracting company is to listen to and use average rates to price a contract.If the person giving the advice has a business card with Building contractor or Developer ,the speed to closing down is usually quicker.

    Calculate your overhead structure , wages , standing time , PAYE , Electrical bargaining council fees , Workmens compensation , vehicle costs , admin staff or time , insurances etc.- This should get you to an hourly rate that you need to charge out at.You will at least know what the least amount is to charge out before crashing - Add some profit for the rainy days ( standing time) and more profit to put into the bank to make the headaches seem worthwhile.

    Everybody always forgets the cost of a vehicle which can only be used and charged out at a around 160 to 172 hrs a month and often costs more than the salary that is driving the vehicle.If you take the repayments , insurance , tyres , services and some fuel you will quickly be above the R40 per hour depending on the vehicle. It is no use charging R4 per KM and the vehicle only drives 10 km for the day

    The price per point is going to be dependent on the installation method , Twin and earth , PVC conduit and wiring , Bosal conduit.The type and make of socket outlet the client requires.It is no use pricing with a standard type socket outlet only to find out that the client wanted gold plated trimmings - Ask the question before starting, likewise with regards to the type of wiring , all clients have there own ideas.

    Are the sockets going to be surface or flush , will you be expected to plaster and paint when complete.
    The qty of points that will be installed - If you installing 3 points vs 30 points will determine the amount of lost time encountered while discussing the positions , pricing and collecting material.
    How far will you need to travel to the job, are there roadways or will you need a 4x4 to get there
    Is there electricity available on site or will you need a generator - Will you be charged for the use of electricity
    Will you be allowed to use standard angle grinder if chasing in the points or will the client insist on a dust free system.Will you be allow to make a noise during normal hours or will noisy work need to happen afterhours
    Health and safety specification can set you back in time and costs depending on the client specification.Medicals , safety equipment , ladders vs scaffolding vs scissor lifts.Cost to have the H&S file put together with all relevant certificates and approval.Are you a subcontractor or principle contractor which comes with a whole set of regulations.You can have multiply principle contractors on one site depending on the appointments

    Are the points in a 100sqm domestic dwelling , 2 000sqm commercial property with minimum circuits or will you be installing each socket on its own circuit - Is the premises flat roof , concrete deck , multi story -
    Best to measure out the amount of conduit , wiring boxes etc you will be installing , estimate the time it will take and then average out for that particular installation, base against the quantity of material + profit, and time you foresee.

    Ask about the payment methods and time period - Are you going to have to cover the material costs for 30, 60 or 90 days , Will you receive progress payments or payment on completion, and on what will the progress payments be based - Will the payments cover your time as well and any material not installed or will it only cover material built in.
    Will there be a 10% retention held on progress payments and at what stage will it reduce.Or will they insist on a construction guarantee.

    There is no one rate fits all in this construction game that we are involved in.
    Pricing is like running - the more you do the easier it becomes but unfortunately the big difference is generally, whoever makes the biggest mistake when pricing usually wins the job

    If you are intending to stay in the industry get involved in the Electrical Employers Association (www.ecasa.co.za ) , attend meetings, courses and learn from others.

  3. Thank given for this post:

    AndyD (02-Jan-19), Dave A (27-Mar-18)

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    Thats very helpful, if U charge out per hour. Do you charge for each guy on the job and the travel costs?

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    Hi Labourer

    Yes , Ideally you would want to charge out for each guy and transport .

    Depending on what you are pricing , the client will not be happy to pay you for 7 people if the job only requires 3 nor will he be happy to pay you for 24 Hrs when the job should only take 3 hours

    Working efficiently is as important as working out your charge out rate.

  6. Thanks given for this post:

    Labourer (02-Jan-19)

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    when i started my electrical bussiness many years ago...this was the most frequently asked question ...and still is today.

    Your overheads will determine your rate...it is that simple.

    some good pointers from GCE...you can see he has been around the block a few times

    one of the most difficult challenges in this industry is not the price you charge...but collecting the money due to you...you might get the pricing right...but until you get the collection right...you gona either make or break.

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